Citron touts cannabis name Aphria again, sees shares above $8 by year-end

Shares of Aphria (APHA) are on the rise after Andrew Left's Citron Research mentioned the stock positively again, saying shares could be above $8 before the end of the year. The short-selling focused investor expects a "major partnership or total buyout soon" for Aphria. 'EVERYTHING CHANGED' IN CANNABIS: In a report titled "Everything has changed: The big 5 Canadian cannabis companies have achieved 'Platform Status,'" Citron Research noted that "in a dramatic change, Trump announced on Friday that marijuana reform ally Mick Mulvaney will replace marijuana opponent John Kelly as his acting White House chief of staff." "Even though federal legalization is around the corner, it will still take at least 18-24 months for the law to change, which makes the Canadian Cannabis LPs the only game in town" in the near-term, Citron contends. "In this environment, traditional metrics can no longer be used to value the businesses of the big five Canadian Cannabis companies. First Constellation, then Altria...this list exploring partnerships is growing by the day," the report reads. Further, Andrew Left's Citron pointed out that Tilray (TLRY), Aurora (ACB) and Aphria were the "only remaining U.S. listed Canadian LP's that have yet to announce a major CPG partnership." "It is reasonable to assume that Cronos beat out its competitors to securing Altria because it was 'cheaper.' Shifting gears ever so slightly, with Aphria's recent share price decline, it is the clear winner in the 'don't overspend' game. [...] Despite Aphria's strong growing operations, its association with nefarious characters has put a discount on the stock that is now too great to ignore," the report added. Citron Research believes that the next two weeks are the "most important" in Aphria's short history and argued that it "has a shot at increased value through becoming the next platform company or being taken out entirely." The stock "can easily rise 40% from here by the end of the year," the report said. PRIOR MENTION: This is not the first time Andrew Left's Citron Research mentioned Aphria positively. Earlier this month, the short seller said via Twitter that "[Aphria] is compelling on all metrics. Cdn footprint too large to ignore. Look past the noise- stock should see US$10. More details to come." WHAT'S NOTABLE: On Tuesday, Tilray announced that it entered into a global framework agreement to collaborate with Novartis (NVS) unit Sandoz to increase availability of high-quality medical cannabis products globally. The agreement is "an evolution of an existing alliance between Tilray and Sandoz Canada" and represents the intentions of the two companies to jointly operate in jurisdictions where cannabis is or will be approved for medical purposes, the companies said. Earlier this month, Altria (MO) announced that it will buy a 45% stake in Cronos Group (CRON) for about $1.8B. PRICE ACTION: In afternoon trading, shares of Aphria have jumped over 10% to $5.98.